King & Roberts (a)

12 Pages Posted: 14 Jun 2009

See all articles by Benjamin Jacobson

Benjamin Jacobson

affiliation not provided to SSRN

C. Ray Smith

University of Virginia - Darden School of Business

Lynne Hosler

affiliation not provided to SSRN

Abstract

This case follows the valuation and negotiation process Wally Camp underwent. The (A) case starts with a description of the business and Wally's assessment of the problems with its current management. Then the case describes the valuation of the company's assets and ends with a valuation decision.

Excerpt

UVA-G-0358

KING & ROBERTS (A)

Walter J. (Wally) Camp, a former faculty member of the Darden Graduate School of Business Administration, was looking for a job in the private sector when he discovered that King & Roberts, a specialty snack distributorship in Charlottesville, Virginia, was selling its Wise division. Excited about the prospects of owning his own business, Wally researched the company, met with the owners, and learned that the asking price for this division was $ 280,000. However, this did not include accounts receivable, inventory or the real estate.

Wally believed the price was way too high. He had reviewed the financial results for King & Roberts, and on Thursday, March 27, 1988, set about calculating his own offering price and price limit for negotiations. The next day, he would make his offer to Corbet King, the 72‑year‑old, 95% owner of King and Roberts, and his 40‑year‑old son, Steven King, the 5% owner.

King and Roberts History

Originally, King & Roberts had distributed Wise products, candy, novelties, beer, and wine. Around 1980, however, the Roberts side of the enterprise broke away from the business, taking the alcohol distribution with them, moved up the street, and named its business King and Roberts Distribution Company. The remaining business, King & Roberts, distributed Wise products, candy, cookies and novelties until 1988 when the owners decided to sell the Wise division. This division constituted roughly one‑half of King & Roberts' gross sales and its territory covered a 50‑mile radius around the Charlottesville area, and extended west to West Virginia.

. . .

Keywords: communication process, communication strategy

Suggested Citation

Jacobson, Benjamin and Smith, C. Ray and Hosler, Lynne, King & Roberts (a). Darden Case No. UVA-G-0358, Available at SSRN: https://ssrn.com/abstract=1419302 or http://dx.doi.org/10.2139/ssrn.1419302

Benjamin Jacobson

affiliation not provided to SSRN

C. Ray Smith

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Lynne Hosler

affiliation not provided to SSRN

No Address Available

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
6
Abstract Views
834
PlumX Metrics